First Marblehead expects $1B from loans

First Marblehead Corp., which provides private education loans, said today that it expects revenue of about $1.03 billion from the sale of asset-backed securities and intends to acquire private student loans with a principal and accrued interest balance of about $725 million.

The previously announced securitization involving The National Collegiate Student Loan Trust 2006-4 is expected to close later this week.

First Marblehead said upon closing it anticipates upfront structural advisory fees of about $89.6 million. The company should receive additional advisory fees of about $8.8 million over the term of the trust, as well as residual revenue of about $48.7 million.

First Marblehead added that roughly 93 percent of the loans scheduled for purchase at closing will go directly to consumers, while schools would buy the remaining 7 percent.

Shares of First Marblehead rose $2.25, or 4.4 percent, to $53.25 in morning trading on the New York Stock Exchange. The company initiated a 3-for-2 stock split before the opening bell.